WTI deep in red below $ 59

FXStreet (Mumbai) –WTI oil futures on the Nymex extends its downward trajectory in to a fourth day in a row largely weighed by negative sentiments on Greek uncertainties while broad based US dollar strength also keeps the black gold undermined.

WTI pressured on stronger USD

Currently, WTI trades -1.43% lower at 58.76, wavering below 59 handle. Oil prices trade extends declines largely on the back of looming Greek debt woes and rumour of a possible Grexit continue to dampen investors’ sentiment and fuel risk-off moods, weighing on riskier assets such as oil.

Moreover, strengthening US dollar on the back of a diving EUR/USD also drags oil prices lower. A stronger greenback makes dollar-priced in commodities expensive for holders in foreign currencies. The US dollar index, a virtual gauge measuring the greenback’s strength versus a basket of its six major peers, trades 0.84% higher at 96.4.

Meanwhile, traders remain preoccupied with negotiations about Iran’s nuclear program, a successful outcome of which could lead to an increase of supply in the already over-flooded market.

WTI Technical Levels

WTI oil has an immediate resistance which stands at 60 levels above which gains could be extended to 60.63 levels. Meanwhile, support is seen at 58 levels from here losses could be extended to 57.21 levels.

WTI oil futures on the Nymex extends its downward trajectory in to a fourth day in a row largely weighed by negative sentiments on Greek uncertainties while broad based US dollar strength also keeps the black gold undermined.

(Market News Provided by FXstreet)